State makes changes to individual income tax
This year, state income tax filers will see changes in allowable deductions.
Although the tax rate and individual exemption amounts remain the same, a number of itemized deductions will be more generous this year.
These include real estate taxes, medical and dental expenses, qualified residential interest and mortgage insurance premiums, child and dependent care, and personal property taxes.
“Taxpayers must first be able to itemize at the federal level before being able to itemize at the state level,” director of taxation Steve Stotts said.
“Based on previous tax filings, charitable contributions and mortgage interest has been the historic area where most people itemize.”
Child and dependent care credit rises to 18.75% for 2019.
Deductions for mortgage interest, personal property tax, and medical care expenses rise to 75%. That’s up from 50% last year.
Kansas’ homestead property tax refund changes this year as well. The upper income limit to claim the refund is now $35,700, up from $35,000 from last year.
“Following this tax season, we anticipate taxpayers to pay closer attention to their expenditures as allowable deductions increase to 100% in multiple categories in tax year 2020. This season, we expect 8% of total taxpayers to itemize,” Stotts said.
Charitable contributions are already deductible at 100%. Residential interest, real and personal property, and expenses for medical care will increase to 100% for the 2020 tax filing year. One more tax change won’t affect income taxes, but will affect property taxes. Starting this month, license fees for hybrid vehicles will be $50, and license fees for electric vehicles will be $100.
Marion lawyer Bob Brookens said a tax change is in the works for 2020 that many people will want to discuss with their tax preparer or financial planner in advance.
“The law has been in the year you turn 70½, you must begin taking from your individual retirement account,” Brookens said. “That has been bumped to the year in which you turn 72. If people have been required to take a minimum distribution for the first time in 2019, they could be impacted. They will not have to do that in 2020.”
Brookens said also that people who will turn 70½ during 2020, or who inherit an IRA, should talk to their tax preparer or the organization holding their retirement money.
Last modified Jan. 9, 2020